The Central Bank of Nigeria has announced that banks benefiting from forbearance measures are under strict monitoring, as part of ongoing efforts to ensure stability and resilience in the country’s banking sector.

In a press statement issued on Tuesday, the Central Bank of Nigeria’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, stated that banks still under temporary regulatory forbearance—stemming from the economic impact of the COVID-19 pandemic—are being closely monitored.

She noted that these time-bound support measures are part of a broader strategy to implement the bank recapitalisation program introduced in 2023.

The statement further noted that the recapitalisation program is aligned with Nigeria’s long-term economic growth objectives and has already led to significant capital inflows and strengthened balance sheets across the banking sector.

The apex bank clarified that the current measures—targeting a limited number of institutions—include temporary restrictions on capital distributions, such as dividends and bonuses.

The measures are intended to support the retention of internally generated funds and strengthen the overall capital adequacy of the affected banks.

The CBN noted that this approach aligns with international regulatory standards.

The statement read, “The measures announced apply only to a limited number of banks. These include temporary restrictions on capital distributions, such as dividends and bonuses, to support retention of internally generated funds and bolster capital adequacy. All affected banks have been formally notified and remain under close supervisory engagement.”

The CBN’s approach also incorporates time-bound flexibility within the capital framework to facilitate a smoother transition for affected banks. It emphasized that Nigeria’s capital requirements remain more stringent than the global Basel III minimums—underscoring the regulator’s commitment to preserving a strong and resilient financial system.

The CBN noted that its actions are in line with transitional measures adopted by regulators in other major global markets in the aftermath of financial crises, reflecting a coordinated approach to post-crisis financial sector reforms.

“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts,” the CBN noted.

According to the statement, the apex bank reaffirmed its commitment to ongoing engagement with industry stakeholders—including the Bankers’ Committee and the Body of Bank CEOs—to foster a transparent, inclusive, and collaborative regulatory environment.

The CBN added, “Nigeria’s banking sector remains fundamentally strong. These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway.”

The regulator reiterated its commitment to preserving the stability of the banking sector while supporting Nigeria’s broader economic growth objectives.

It was earlier reported that the CBN issued a new directive requiring banks under regulatory forbearance to suspend dividend payments, defer executive bonuses, and pause investments in foreign subsidiaries or offshore ventures.

According to the CBN, this temporary suspension is part of a broader strategy aimed at reinforcing capital buffers, enhancing balance sheet resilience, and promoting prudent capital retention across the banking sector.